We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
EUR/USD Eyes 1.3780 As Candlesticks Suggest Bears In Control

EUR/USD Eyes 1.3780 As Candlesticks Suggest Bears In Control

2014-05-09 10:57:00
David de Ferranti, Currency Analyst
Share:

Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Long upper wick on daily candle highlights significant selling pressure
  • Bearish Engulfing pattern on four hour chart foreshadowed intraday dip

EUR/USDhas plunged after failing to claim the psychologically-significant 1.4000 handle in recent trading. The intraday volatility has failed to yield a classic candlestick reversal pattern. However, the length of the upper wick and body of the daily candle suggests the bears are in control of prices. This opens up further declines towards the next noteworthy level of support at 1.3780.

EUR/USD: Eyeing 1.3780 As Bears Take Control

EUR/USD Eyes 1.3780 As Candlesticks Suggest Bears In Control

Daily Chart - Created Using FXCM Marketscope 2.0

A Bearish Engulfing pattern near 1.3950 offered an intraday signal that declines were on the way for the Euro. While the Asian session has yielded a couple of Doji formations which hints at some hesitation from the bears, they are not enough to suggest a bounce at this stage.

EUR/USD: Bearish Engulfing Pattern Sparks Intraday Dip

EUR/USD Eyes 1.3780 As Candlesticks Suggest Bears In Control

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.